Sensex succumbs to triple jolt

OUR BUREAU

Mumbai, Aug. 17: After rising over 140 points, the Sensex today gave up most of its gains and closed just 34 points higher as sentiments turned sour after a CAG report found anomaly in government’s coal allocation. The report named Jindal Steel and Tata Power among the firms that were likely to benefit from the coal blocks allocated on a nomination basis.

In a separate report, the CAG said RPower got undue benefit of Rs 29,033 crore when the government allowed the use of surplus coal from blocks allotted to the Sasan power plant for other projects.

The Reliance Power stock dropped 5.6 per cent. Tata Power declined 3.71 per cent, Jindal Steel Power lost 4.02 per cent and Hindalco fell 2.5 per cent.

Shares of GMR Infra tanked over 3 per cent after the CAG accused the civil aviation ministry of violating bid conditions for the benefit of GMR-led Delhi International Airport Ltd.

“Markets ended flat, reversing the earlier gains of the day. The CAG reports on coal, power and aviation impacted sentiments,” said Dipen Shah, head of fundamental research, Kotak Securities.

After rising to a high of 17801.39, the BSE benchmark index dipped to a low of 17622.62, after the CAG said private firms were likely to have gained about Rs 1.86 lakh crore from coal blocks allocated on a nomination basis, which amounted to a notional loss to the national exchequer.